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The Tax Museum Corporation has the following taxable income before net operating losses: Given the above and considering NOLs, how much tax will The Tax

image text in transcribed The Tax Museum Corporation has the following taxable income before net operating losses: Given the above and considering NOLs, how much tax will The Tax Museum pay in years 2 and 3 ? Assume the corporate tax rate is 21%, that NOLs cannot be carried back but can be carried forward indefinitely, and that NOLs can offset at most 80 percent of the taxable income in a given year. a. Year 2: $0 Year 3: tax on $10,000 of income =$2,100. ( 20% of $50,000 that cannot be offset by NOL) b. Year 2: $4,200 Year 3:$2,100 c. Year 2: no tax Year 3: no tax d. Year 2: no tax Year 3: $8,400

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